Disaster Recovery As A Service (DRaaS) Market Size, Share, Opportunities, And Trends By Operating Model (Managed DRaaS, Assisted DRaaS, Self-service DRaaS), By Service Type (Real-time Replication, Backup & Restore, Data Protection, Others), By Organization Size (Large, SMEs), By Deployment Mode (Public Cloud, Private Cloud), By End User (BFSI, Telecommunication, Energy and utilities, Media and Entertainment, Healthcare, Others), And By Geography - Forecasts From 2025 To 2030

Description

Disaster Recovery As A Service (DRaaS) Market Size:

The Disaster Recovery As A Service (DRaaS) Market is expected to grow from USD 13.660 billion in 2025 to USD 30.629 billion in 2030, at a CAGR of 17.53%.

The modern business landscape is characterized by an absolute reliance on digital infrastructure, making data and application availability a strategic imperative. Disaster Recovery as a Service (DRaaS) has emerged as a crucial business continuity solution, enabling organizations to maintain operations and rapidly recover from disruptive events, whether they are natural disasters, hardware failures, or, most critically, cyberattacks. Unlike traditional, on-premises disaster recovery setups that require significant capital investment in a secondary data center, DRaaS leverages a cloud-based model to provide replication, failover, and recovery capabilities. This shift democratizes access to robust disaster recovery, making it a viable option for a wider range of businesses, including small and medium-sized enterprises (SMEs).

Disaster Recovery As A Service (DRaaS) Market Analysis

Growth Drivers

Several converging factors propel the DRaaS market, each creating a direct imperative for businesses to adopt the service. The most potent driver is the escalating threat of cyberattacks, particularly ransomware. Ransomware attacks directly threaten an organization's core data and operational systems, with the potential to cause prolonged and financially devastating downtime. In this context, DRaaS is not merely an IT safeguard but a core business resilience tool. The service's ability to provide a clean, immutable copy of data from a pre-attack state, and to orchestrate a rapid failover to a cloud-based environment, directly addresses the primary objective of ransomware response: business continuity. This capability transforms DRaaS from a nice-to-have to a non-negotiable component of a modern cybersecurity strategy, thereby fueling a significant increase in demand.

Another powerful driver is the growing adoption of cloud computing. As businesses migrate their core applications and workloads to the cloud, they require a corresponding disaster recovery strategy that is architecturally aligned with their cloud-native environment. Traditional on-premises disaster recovery solutions are ill-suited for this purpose. The inherent scalability, flexibility, and pay-as-you-go cost model of DRaaS are naturally complementary to cloud adoption, making it the logical choice for protecting these cloud-based workloads. This synergy is particularly evident in hybrid cloud environments, where organizations need to seamlessly replicate and recover data and applications between their on-premises infrastructure and public cloud platforms. The complexity of managing this hybrid setup increases the demand for assisted or managed DRaaS offerings, where providers handle the intricate orchestration and monitoring.

Finally, the economic advantages of the DRaaS model are a significant market catalyst. Maintaining a secondary physical data center for disaster recovery is a costly undertaking, involving substantial capital expenditures for hardware and software, as well as ongoing operational costs for power, cooling, and maintenance. DRaaS eliminates this financial burden. The pay-for-what-you-use model allows organizations to pay for replication and storage during normal operations and only incur higher costs during an actual disaster event. This financial efficiency makes enterprise-grade disaster recovery accessible to a broader market, including SMEs that previously could not afford a robust business continuity solution. This cost-effectiveness directly translates into a higher adoption rate, expanding the overall market for DRaaS.

Challenges and Opportunities

The DRaaS market faces certain challenges that temper its growth, primarily related to data security, privacy, and the complexity of integration. Organizations, particularly those in highly regulated industries, harbor concerns about entrusting their sensitive data to a third-party provider. The specter of data breaches and the need to comply with specific data sovereignty laws represent a key headwind. Furthermore, the integration of a new DRaaS solution with a company's existing and often complex IT infrastructure can be a daunting task, requiring specialized expertise and creating potential for service disruption. These challenges can lead to a longer sales cycle and hesitation among potential customers.

However, these challenges also create significant opportunities for innovation and market differentiation. Providers that can transparently demonstrate robust security protocols, including end-to-end encryption, multi-factor authentication, and compliance with key industry standards, can build trust and capture market share. The opportunity lies in providing clear and verifiable evidence of security measures, which directly addresses a primary customer concern and enhances demand. For example, offering immutable backups that cannot be altered or deleted by a ransomware attack provides a critical security advantage.

Another major opportunity is the increasing demand for advanced, automated solutions. As IT environments become more complex, the need for simplified, "one-click" failover and failback becomes paramount. This creates an opportunity for providers to invest in automation and orchestration technologies that reduce the manual effort required during a disaster. By offering highly automated and easy-to-manage solutions, providers can attract customers who are resource-constrained or lack specialized in-house expertise. This shift towards a more service-centric, automated model allows companies to move up the value chain from simple data backup to comprehensive business continuity management, thereby expanding the potential for service offerings and increasing demand.

Supply Chain Analysis

As a service, DRaaS does not have a traditional physical supply chain. Instead, its "supply chain" is a network of technological and operational dependencies that enable service delivery. At the core of the supply chain are the cloud infrastructure providers, such as AWS, Microsoft Azure, and Google Cloud, which provide the foundational compute, storage, and networking resources. DRaaS providers, in turn, build their services on top of these hyper-scale cloud platforms. This creates a dependency on the uptime, reliability, and security of these underlying cloud providers. A disruption in a major cloud region can impact multiple DRaaS providers and their customers.

The second key component of the supply chain is the software that orchestrates the replication, failover, and failback processes. Companies like Veeam and Acronis develop the core software platforms that enable these services, which are then either used by the DRaaS providers themselves or sold to end-users who opt for a self-service model. The final link in the chain is the managed service provider (MSP) or value-added reseller (VAR) channel. These partners deliver and support DRaaS offerings to end-users, often providing specialized consulting, implementation, and ongoing management services. The health of this channel is critical to the market's growth, as it acts as the primary conduit for reaching a broad customer base.

Government Regulations

Government regulations and industry-specific compliance mandates are significant market drivers for DRaaS. These regulations often require organizations to demonstrate the ability to recover critical data and systems within a specific timeframe following a disruption, thereby creating a direct market imperative for robust disaster recovery solutions.

• United States: Health Insurance Portability and Accountability Act (HIPAA) / Federal Financial Institutions Examination Council (FFIEC). HIPAA mandates the protection of electronic protected health information (ePHI), requiring healthcare providers and their associates to have contingency plans, including data backup and disaster recovery. This directly drives demand for DRaaS solutions that are HIPAA-compliant and can demonstrate verifiable recovery capabilities. Similarly, the FFIEC's guidelines for financial institutions require robust business continuity plans, making DRaaS a critical tool for meeting regulatory standards and ensuring financial resilience.
• European Union: General Data Protection Regulation (GDPR) / Digital Operational Resilience Act (DORA). GDPR mandates that organizations must have a process in place to restore the availability and access to personal data promptly in the event of a physical or technical incident. This requirement directly fuels demand for DRaaS, as it provides a clear pathway to compliance. The DORA regulation, which came into force in January 2023, strengthens these requirements by establishing a comprehensive framework for managing ICT-related risk in the financial sector, further increasing the demand for resilient and auditable recovery services.
• Singapore: Monetary Authority of Singapore (MAS) Technology Risk Management (TRM) Guidelines. The MAS TRM Guidelines mandate that financial institutions must have a robust and well-documented business continuity and disaster recovery plan. The guidelines specifically state that institutions should test their recovery plans regularly to ensure they meet their Recovery Time Objective (RTO) and Recovery Point Objective (RPO). This regulatory environment creates a direct and measurable demand for DRaaS solutions that can help financial institutions meet these rigorous standards and pass regulatory audits.

In-Depth Segment Analysis

By Operating Model: Managed DRaaS

The managed DRaaS segment represents a significant portion of the market, driven by the need for a comprehensive, hands-off approach to business continuity. This model is particularly attractive to organizations, especially SMEs, that lack the in-house IT expertise or staff bandwidth to plan, implement, and maintain a complex disaster recovery solution. The imperative for businesses to focus on their core competencies without being burdened by the intricacies of IT infrastructure management directly propels the necessity for managed DRaaS. A managed provider handles the entire process, including initial setup, continuous replication, regular testing, and, most critically, the orchestration of failover during an actual disaster. This offers a clear value proposition: a guaranteed recovery with minimal internal effort. This market is also a function of the increasing sophistication of cyber threats and the need for 24/7 monitoring and rapid response, which a third-party expert is better positioned to provide than an overburdened internal IT team.

By End User: Healthcare

The healthcare sector is a critical and growing end-user for DRaaS, driven by a unique confluence of factors. The healthcare industry's reliance on electronic health records (EHRs) and other digital systems makes it highly vulnerable to data loss and system downtime. A disruption in these systems can not only halt operations but also directly impact patient care, with potentially life-threatening consequences. This extreme sensitivity to downtime is a core growth driver. Furthermore, the healthcare sector is a prime target for ransomware attacks due to the high value and sensitivity of patient data. The need to protect this information and ensure HIPAA compliance creates a non-negotiable demand for a robust and secure recovery solution. DRaaS provides a solution that addresses these dual imperatives: it ensures that critical systems and patient data can be rapidly restored while also providing a compliant and auditable recovery process. The increasing digitization of patient records and the proliferation of connected medical devices will continue to fuel this demand, as more data is created and must be protected.

Geographical Analysis

US Market Analysis

The US market for DRaaS is one of the most mature and dominant globally. A high concentration of large enterprises, a robust technology infrastructure, and a complex regulatory landscape drive its demand. The US is a hotbed for cyberattacks, particularly ransomware, which has created a widespread understanding among businesses of all sizes of the need for a strong disaster recovery strategy. The market benefits from a large number of DRaaS providers, including both hyperscale cloud providers and specialized vendors, creating a competitive environment that drives innovation. Regulations like HIPAA and the financial regulations of the FFIEC and FINRA create a baseline demand for compliant and auditable DRaaS solutions. The prevalence of cloud adoption and the widespread use of hybrid IT environments in the US further accelerate the demand for services that can provide seamless replication and recovery across disparate platforms.

Brazil Market Analysis

Brazil's DRaaS market is in a growth phase, driven by rapid digitalization, the rise of cloud computing, and a growing awareness of data security risks. The country has a large number of SMEs that are increasingly adopting cloud services and, in turn, are seeking cost-effective business continuity solutions. The DRaaS model, with its reduced capital expenditure, is particularly well-suited for this market segment. While the regulatory environment is still evolving, the General Data Protection Law (LGPD) in Brazil, which is modeled after the GDPR, is creating a new imperative for data protection and recovery plans, which is a direct market growth catalyst. The prevalence of natural disasters and infrastructure issues in some regions of Brazil also contributes to the demand for off-site data replication and recovery.

UK Market Analysis

The UK market for DRaaS is mature and highly sophisticated, propelled by stringent data protection regulations and a concentrated financial services sector. The UK's adherence to GDPR, even after Brexit, means that businesses are required to have demonstrable data recovery plans in place. The financial sector, a cornerstone of the UK economy, is subject to rigorous oversight by the Financial Conduct Authority (FCA), which mandates operational resilience. DRaaS is a core tool for financial institutions to meet these regulatory requirements. The market is characterized by a strong ecosystem of managed service providers (MSPs) who offer specialized DRaaS solutions to a diverse range of industries. The high cost of maintaining physical infrastructure in the UK also makes the cloud-based, pay-as-you-go model of DRaaS an attractive economic proposition.

Saudi Arabia Market Analysis

Saudi Arabia's DRaaS market is expanding rapidly due to the country's Vision 2030 plan, which emphasizes economic diversification and digitalization. As the government and private sectors invest heavily in cloud infrastructure and digital services, the need for robust data protection and recovery becomes paramount. The imperative to protect critical national infrastructure, as well as the growing financial and telecommunications sectors, also fuels the market. While a comprehensive data protection law is still in its early stages, the Saudi Central Bank (SAMA) has issued guidelines for financial institutions that include requirements for business continuity and disaster recovery. This creates a regulatory driver for DRaaS adoption. The market's growth is also supported by the presence of global cloud providers, such as AWS and Microsoft, which are establishing a physical presence in the country, thereby enabling local DRaaS offerings with low latency.

Japan Market Analysis

Japan’s DRaaS market is characterized by a high degree of technological sophistication and a strong focus on resilience against natural disasters. The country's frequent exposure to earthquakes, typhoons, and other seismic events has historically driven a strong demand for on-premises disaster recovery. However, the shift to cloud computing is now increasing the need for DRaaS. This model offers an ideal solution by providing geographically dispersed data replication and a reliable failover site. The market is also driven by the financial services sector and the manufacturing industry, both of which require high levels of business continuity. Regulations such as the Act on the Protection of Personal Information (APPI) create a clear incentive for companies to have auditable data recovery plans. The market benefits from a well-developed IT infrastructure and a highly skilled workforce, which supports both self-service and managed DRaaS offerings.

Competitive Environment and Analysis

The DRaaS market is highly competitive, with a mix of hyperscale cloud providers, traditional IT vendors, and specialized DRaaS-focused companies. Competition is based on factors such as service reliability, breadth of features, ease of use, and cost.

• Veeam Software: Veeam is a major player in the market, primarily through its comprehensive data resilience platform. The company's strategic positioning is rooted in its focus on enterprise-grade backup, recovery, and data management solutions. Its Veeam Data Platform offers a range of services that enable DRaaS, from real-time replication to automated failover. The company's recent focus on a "Data Resilience" strategy and its emphasis on protecting against ransomware directly aligns with and drive market expansion.
• Acronis: Acronis differentiates itself with a natively integrated approach to cyber protection, combining data protection and cybersecurity. The company’s strategic positioning is centered on its ability to provide a comprehensive suite of solutions that protect against a variety of modern threats, including ransomware and malware. Acronis's DRaaS offerings are an extension of this integrated platform, providing customers with a single solution for backup, disaster recovery, and threat mitigation. This integrated approach is a key growth driver for companies seeking to simplify their IT security and resilience stack.
• Microsoft: Microsoft's Azure Site Recovery is a core DRaaS offering that leverages its extensive global cloud infrastructure. Its strategic advantage is its deep integration with the Azure ecosystem, making it a natural choice for companies that have already invested in Microsoft's cloud services. The demand for Azure Site Recovery is directly tied to the overall growth of Azure adoption. Microsoft's scale and investment in security and compliance provide a compelling value proposition, particularly for large enterprises and highly regulated industries.

Recent Market Developments

• September 2025: Aneo, a Nordic energy company, selected IFS Cloud to accelerate its international growth and sustainability ambitions. While not a pure DRaaS provider, this development underscores the growing demand for comprehensive cloud solutions that include resilience and data management capabilities, which are often bundled with larger enterprise resource planning (ERP) systems. The adoption of such platforms indicates a market-wide trend toward integrated, cloud-based operational and resilience strategies.
• June 2025: Acronis launched a new feature that supports disaster recovery to Microsoft Azure, in addition to its own data centers. This development directly addresses the growing demand for flexible multi-cloud and hybrid cloud DRaaS solutions. By enabling failover and failback to a major public cloud platform, Acronis is expanding its addressable market and catering to customers with existing Azure commitments, thereby making its service more attractive and increasing its potential for adoption.
• April 2025: Veeam launched its strategic framework to address the "reality gap" in data resilience. This development is not a specific product launch but a strategic initiative designed to meet a core market requirement. The initiative, based on new global research, highlights a key market imperative: a need for more effective and proactive data resilience solutions. By providing a maturity model, Veeam is positioning itself as a strategic partner to help organizations improve their resilience, thereby generating future demand for its products and services.

Disaster Recovery As A Service (DRaaS) Market Segmentation:

• By Operating Model
  • Managed DRaaS
  • Assisted DRaaS
  • Self-service DRaaS
• By Service Type
  • Real-time Replication
  • Backup & Restore
  • Data Protection
  • Others
• By Organization Size
  • Large
  • SMEs
• By Deployment Mode
  • Public Cloud
  • Private Cloud
• By End User
  • BFSI
  • Telecommunication
  • Energy and utilities
  • Media and Entertainment
  • Healthcare
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others

Table Of Contents

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. DISASTER RECOVERY AS A SERVICE (DRAAS) MARKET BY OPERATING MODEL

4.1. Introduction

4.2. Managed DRaaS

4.3. Assisted DRaaS

4.4. Self-service DRaaS

5. DISASTER RECOVERY AS A SERVICE (DRAAS) MARKET BY SERVICE TYPE

5.1. Introduction

5.2. Real-time Replication

5.3. Backup & Restore

5.4. Data Protection

5.5. Others

6. DISASTER RECOVERY AS A SERVICE (DRAAS) MARKET BY ORGANIZATION SIZE

6.1. Introduction

6.2. Large

6.3. SMEs

7. DISASTER RECOVERY AS A SERVICE (DRAAS) MARKET BY DEPLOYMENT MODE

7.1. Introduction

7.2. Private Cloud

7.3. Public Cloud

8. DISASTER RECOVERY AS A SERVICE (DRAAS) MARKET BY END-USER

8.1. Introduction

8.2. BFSI

8.3. Telecommunication

8.4. Energy and utilities

8.5. Media and Entertainment

8.6. Healthcare

8.7. Others

9. DISASTER RECOVERY AS A SERVICE (DRAAS) MARKET BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. USA

9.2.2. Canada

9.2.3. Mexico

9.3. South America

9.3.1. Brazil

9.3.2. Argentina

9.3.3. Others

9.4. Europe

9.4.1. Germany

9.4.2. France

9.4.3. United Kingdom

9.4.4. Spain

9.4.5. Others

9.5. Middle East and Africa

9.5.1. Saudi Arabia

9.5.2. UAE

9.5.3. Israel

9.5.4. Others

9.6. Asia Pacific

9.6.1. China

9.6.2. Japan

9.6.3. India

9.6.4. South Korea

9.6.5. Indonesia

9.6.6. Thailand

9.6.7. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. Amazon Web Services, Inc.

11.2. Microsoft Corporation

11.3. IBM Corporation

11.4. Veeam Software Group

11.5. VMware, Inc.

11.6. Cisco Systems, Inc.

11.7. Hewlett Packard Enterprise Company

11.8. Oracle Corporation

11.9. Dell Technologies Inc.

11.10. Sungard Availability Services LP

11.11. TierPoint, LLC

11.12. Recovery Point Systems, Inc.

11.13. Infrascale, Inc.

11.14. Acronis International GmbH

11.15. Evolve IP LLC

11.16. iLand Internet Solutions Corporation

Companies Profiled

Amazon Web Services, Inc.

Microsoft Corporation

IBM Corporation

Veeam Software Group

VMware, Inc.

Cisco Systems, Inc.

Hewlett Packard Enterprise Company

Oracle Corporation

Dell Technologies Inc.

Sungard Availability Services LP

TierPoint, LLC

Recovery Point Systems, Inc.

Infrascale, Inc.

Acronis International GmbH

Evolve IP LLC

iLand Internet Solutions Corporation

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